that the southern countries had to borrow to finance importing, germany will have to have a trade deficit, or there's no going home again. in china they cannot grow forever on the basis of exporting to the americans and not buying from the americans, because then they smother their customers. these imbalances haven't been fixed so, yes, the danger is real, and it's grave. jenna: charlie, let's talk about the ways to fix i. peter was mentioning the different types of economies at play in europe, but one of the things mentioned overall a couple years ago everyone was saying you've got to fix their debt and deficit, so people cut spending, and that became part of the problem because it slowed down the economy. >> well -- jenna: there's a little bit of you're darned if you do, you're darned if you don't. >> the imf is not a great example of how to fix things. they like high taxes, they like all those measures that slow down the economy. one of the problems in europe, and i have family in europe, is that the welfare state is too big. in italy it's la doll they vida every day. they're still there and sti
